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Singapore Parents’ Guide To Understanding (And Maximising) Their Child’s Edusave and PSEA

Every Singaporean citizen student gets an Edusave account if they are studying in a recognised institute. What does this mean for parents and what can they do with it?


Raising a child can be expensive. To support parents with the cost of raising their child, and help each child fulfil their fullest potential, there are various government schemes to provide much-needed and much-appreciated financial support. From day one of a baby’s life, there is the baby bonus cash gift of $8,000 (payable over a period of 18 months), as well as the Child Development Account (CDA) and CDA First Step Grant of $3,000.

Read Also: 5 Ways For Singapore Parents To Maximise The Child Development Account (CDA)

Another financial resource the government provides your child with is the Edusave account that the government sets up for your child when they are of schooling age. Your child’s Edusave account is to relieve the financial costs of their educational needs, but how you use the funds in your child’s Edusave is up to you.

Understanding what this account means and can do for your child will help you make an informed decision on how you spend it over the course of your child’s education. Here’s a guide on the important things you need to know about Edusave.

#1 Edusave Is Automatic And Compulsory For Singaporean Students

Edusave is a compulsory account that is set up for every Singaporean child upon their admission into a recognised institute (up to secondary school) automatically if they are between the ages of 6 and 16.

Edusave is administered by the Ministry of Education (MOE) and is not a bank account.

#2 What Can I Use My Edusave Account For?

Your child’s Edusave account can only be used for approved fees and enrichment programmes. Schools require parental consent for every Edusave deduction. In some cases, there is a percentage of co-payment involved as Edusave does not cover 100% of the programme fees.

You cannot withdraw from your child’s Edusave unless it is to an approved institution or programme. Funds in your child’s Edusave account earn an interest of 2.5% per annum.

Read Also: Should You Buy An Endowment Plan Or Invest Towards Your Child’s Future Education?

#3 How Are Funds Added Into My Child’s Edusave Account?

Government Annual Top-ups: Every February, the government makes a yearly contribution to your child’s Edusave account until they reach the age of 16. The figure is announced every year as it changes. In 2019, the annual contribution was $230 for primary-level students and $290 for secondary-level students.

One-off Budget Top-ups: Occasionally, there may be one-off top-ups provided to Edusave accounts if the Singapore budget is enjoying a surplus that year. Top-up amounts depend on the annual value of your home. In 2019, there was an additional top-up of $150.

Edusave Awards And Scholarships: Singaporean students who excel academically and non-academically are sometimes awarded Edusave awards or scholarships. These funds are then added to the respective student’s accounts.

Edusave Grants: Government-funded special education schools are given an additional grant to support any school-based achievement awards for outstanding students. If your child is a qualifying student in such a school, they will receive additional grants they can add to their Edusave.

Read Also: How Much Does It Cost To Send Your Child To Popular Enrichment Classes?

#4 What Happens To My Child’s Edusave When They Leave School?

As your Edusave account is only until your child is 16 years old, any unused Edusave funds are transferred into a Post-Secondary Education Account (PSEA) when they leave secondary school. Your child will receive a letter when the transfer takes place.

The PSEA balance earns an interest of 2.5% per annum interest, just like the Edusave funds. This account is held until your child is 30 years of age.

After the age of 30, any remaining funds are transferred to the person’s CPF OA, which can be used for housing, education, and investments. Alternatively, your child’s PSEA funds can be transferred to their siblings as well.

Read Also: How You Can Make Your Child A CPF Millionaire By Contributing $400 Every Month Until They Turn 21

#5 What Can I Use My PSEA Funds For?

You can use your PSEA funds to offset the cost of approved programmes and fees in almost the same way you use your Edusave.

Examples include:

– Spending it for approved fees and charges
– Establish standing order for approved recurring charges
– Ad-hoc withdrawal applications
– Pay loans and approved financing schemes

For instance, your child has graduated from secondary school and is enrolled in a local polytechnic. The leftover funds will be directed to their PSEA account which they can now use to pay for school fees or approved school-related courses.

Alternatively, it can even be used for a university student’s overseas exchange programme, at arts institutions or even at certain public agencies and private training providers.

Watch Also: How Much Do Exchange Students Really Know About Their Overseas Expenses

#6 How Can I Find Out My Edusave / PSEA Balance?

You can call the Edusave/PSEA hotline at 6260 0777 to check on your account balance that is updated every Wednesday.

Make The Most Of Your Child’s Edusave / PSEA By Being Informed

Knowing how the funds can be used can help you plan for the future education-related expenditures for your child. With proper planning, these funds can go a long way in elevating your child’s holistic educational development, as they are not held back by any financial constraints. 

Read Also: Complete Guide To Tertiary Education Financing And Loans For Students In Singapore

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